Kerekes Manufacturing Corporation has prepared the following overhead budget for next month. ...
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Accounting
Kerekes Manufacturing Corporation has prepared the following overhead budget for next month.
| Activity level | 3,900 | machine-hours | |
| Variable overhead costs: | |||
| Supplies | $ | 23,010 | |
| Indirect labor | 38,220 | ||
| Fixed overhead costs: | |||
| Supervision | 15,600 | ||
| Utilities | 7,300 | ||
| Depreciation | 8,300 | ||
| Total overhead cost | $ | 92,430 | |
The company's variable overhead costs are driven by machine-hours.
What would be the total budgeted overhead cost for next month if the activity level is 3,800 machine-hours rather than 3,900 machine-hours?
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